California Seniors Reverse Mortgage Changes Coming Fast
March 2, 2015 is the scheduled date for major changes* to the Reverse Mortgage guidelines.
Retirees, baby boomers and homeowners who have been delaying getting informed about this special home loan (for which you must be 62 to qualify) would be wise to get started NOW. Why? If you move quickly you can have an application completed and an FHA case number assigned to you prior to March 2, 2015 and your application will fall under current guidelines which are less stringent.
* (If you are interested in the details, the HUD Mortgagee letters (ML 2014-21 and ML 2014-22) can be viewed here.
Other guidelines remain in place such as paying taxes, maintaining the home, HOA dues (if any), homeowners insurance and the home must be your primary residence. Counseling is required (over the phone or in person) for all borrowers. You can locate a reverse mortgage counselor online or you can call 800-569-4287. A reverse mortgage specialist will provide you with a list serving California senior homeowners.
This is so important, it is worth repeating: Complete the application prior to the pending changes to allow your loan to be processed under current (less stringent) guidelines. Mandatory counseling (see below) must be completed, the application must be taken, and the FHA case number must be issued, all before March 2. So don't delay.
Here is a quick look......
1. A financial assessment could make it tougher to qualify.
2. Additional documentation which may include tax returns, payment histories, and proof of assets.
3. Credit scores will be considered and .....
4. LESA - Life Expectancy Set Aside - calculated during the application process means money held back for future taxes.
For many, one's home is their largest asset and a reverse mortgage may be a good financial decision to put your home's equity to work for you. Requesting answers to all of your questions does not obligate you in any way. And while you are at it, get a loan comparison from a reverse mortgage specialist. A loan comparison will give you the data you need to make this important decision.
Important: A reverse mortgage is a loan which is due when the last borrower leaves the home permanently. You may refinance your current home or purchase a home more suitable for your retirement with a reverse mortgage. To find out if you qualify or if you want information for a parent or loved one, call a reverse mortgage specialist right away.
Consideration of a reverse mortgage to stretch your retirement dollars may be an opportunity you need to explore. Don't procrastinate. Get the facts.
California Seniors Reverse Mortgage Changes are coming fast!